IFLR 1000
The Guide to the World's Leading Financial Law Firms

Dechert's derivatives practice benefits from its position as one of the leading firms in investment funds. The firm has particular expertise in issues arising under the US Commodity Exchange Act and related regulations.

Dechert's derivatives practice is led by M Holland West, who joined in August 2010 from Shearman & Sterling, where he was head of the global hedge fund, private equity, derivatives, and structured finance practices.

The firm's structured finance and securitisation practice has also seen some movement. In December 2010, partner Laura Swihart joined the group, and partner Steven Molitor left it in August 2010 to become the chief operating officer of Galton Capital Group, a residential mortgage credit fund manager.

Dechert represents Freddie Mac in connection with its commercial mortgage loan scheme, known as the K program, which involves five to 12 deals per year. The most recent, K11, was a commercial mortgage-backed securitisation of 76 multifamily mortgage loans, which closed in March 2011 and was worth $1.19 billion.

The firm also advised H/2 Capital Partners on its acquisition of the B Piece of the JP Morgan Chase Bank 2010 C-2 CMBS securitisation, worth $1.1 billion. The transaction involved 30 mortgage loans, secured by 47 properties. The firm's work included reviewing and commenting on the securitisation issuance documentation and reviewing certain mortgage loans to ensure conformance with emerging market standards.

Dechert is a new entry to the financial services regulatory ranking this year, following the firm's acquisition of a respected team from Fried Frank Harris Shriver & Jacobson. The group, which joined Dechert in June 2010, includes partners David Ansell, Robert Ledig and Thomas Vartanian, the former chair of Fried Frank's financial institutions and electronic commerce transactions groups. "They have clearly beefed up, and they have a strong international practice," says one competitor.

In April 2011, the firm represented Citadel in the company's exchange of its debt and equity instrument in E*Trade, and subsequent reduction of its position below 10%. The $3.1 billion deal was one of the largest recaps of a financial company by a single investor, and presented novel challenges.

The firm also advised Sterling Bank in Washington State on its $750 million recapitalisation by private equity investors, which closed in August 2010. The transaction represented the largest bank recapitalisation done in 2010 and posed complex issues involving eliminating of Treasury TARP interests, private equity passivity and the qualification of Korean investors.

Dechert is respected by rivals as a top-notch registered funds practice, and a strong presence in hedge funds. The firm has particular strength in exchange-traded fund formation and is known as an innovator in exchange-traded commodities. It pioneered the development of registered fund of hedge funds, organised the first unit investment trusts to invest in equity securities, and organised the first operational funds of funds.

In August 2010 the firm expanded its capacity with the hire of partner Holland West from Shearman & Sterling.

Peers says the firm's funds practices benefit from its relationships with key figures at the SEC. "They are a little bit faster off the mark in terms of anticipating regulatory changes and that additional regulatory focus may help inform their clients of their place in the market," says one rival. "I think they have picked up their share of the market because of the ties they have with senior people in Washington." The firm successfully submitted a petition to the SEC to exempt certain Canadian mutual funds from SEC regulation.

Dechert's lawyers represent some of the largest mutual fund groups in the world. Assets managed by its top clients range from over $100 billion to $1.5 trillion.

Dechert has been involved in many of the major bankruptcies in the US over the last year, including Citadel Broadcasting, CIT Group, Delphi, General Growth Properties, Lehman Brothers, Scotia Pacific/Pacific Lumber, and Visteon Corporation. The firm has particular expertise on the creditor side. Peers admire practice co-chair Michael Sage, with one rival describing him as "a well-respected lawyer".

A team led by Sage and partner Brian Greer is representing Lehman ALI in the Chapter 11 cases of Innkeepers USA Trust. The case involves restructuring $220 million of senior mortgage debt held by Lehman ALI and approximately $1 billion of other secured debt.

The firm also represented Oaktree Capital Management, Fidelity Management and Research Company and Serengeti Asset Management as bondholders in the Chapter 11 bankruptcy of gaming company Station Casinos in 2010. As part of a confirmed plan of reorganisation, the bondholders agreed that their affiliates would purchase up to $100 million of equity interests in connection with a rights offering. The rights offering will be made to unsecured creditors of Station Casinos and its affiliates as the company emerges from bankruptcy.